Transfer of Tax credits / allowances when spouse gives up work

[MUM2KIDS]

Hi

I have read some of the previous posts but am still confused. I am thinking of giving work up to stay at home with kids and was trying to work out the net loss of earnings when doing this. Both my husband and I pay tax at the high rate. What allowances / credits can my husband claim next year - from what I understand it is not the same as I currently get - married couple 2 people working. Based on current salary Husband will still be on the top rate of tax next year.

Thanks in advance for your replies

 

[ClubMan]

Make sure that you are on joint/aggregate married taxation. Probably makes no different while you are both earning and on the top tax rate but should do if one of you stops working.

Maybe try Karl Grabe's tax calculator www.taxcalc.eu. Enter the current married/both earning details and then compare the results to the married/one earning results. You may also be entitled to the Home Carer's Tax Credit so factor this into the second set of results. Note that Karl's calculator only deals with a common subset of tax credits which may not cover all that are relevant to your situation.

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